EQUINOR ASA-SPON ADR (EQNR) Stock Fundamental Analysis
USA - NYSE:EQNR - US29446M1027 - ADR
24.27 USD
+0.06 (+0.25%)
24.27 USD
0 (0%)
Taking everything into account, EQNR scores 6 out of 10 in our fundamental rating. EQNR was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. EQNR has an excellent profitability rating, but there are some minor concerns on its financial health. EQNR has a bad growth rate and is valued cheaply. With these ratings, EQNR could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
EQNR had positive earnings in the past year.
In the past year EQNR had a positive cash flow from operations.
EQNR had positive earnings in 4 of the past 5 years.
EQNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EQNR's Return On Assets of 5.91% is fine compared to the rest of the industry. EQNR outperforms 65.71% of its industry peers.
Looking at the Return On Equity, with a value of 19.60%, EQNR belongs to the top of the industry, outperforming 85.24% of the companies in the same industry.
The Return On Invested Capital of EQNR (23.74%) is better than 97.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQNR is significantly above the industry average of 21.91%.
The 3 year average ROIC (33.92%) for EQNR is well above the current ROIC(23.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 19.6% | ||
| ROIC | 23.74% |
ROA(3y)11.06%
ROA(5y)6.92%
ROE(3y)32.85%
ROE(5y)20.85%
ROIC(3y)33.92%
ROIC(5y)25.74%
1.3 Margins
With a Profit Margin value of 7.72%, EQNR perfoms like the industry average, outperforming 50.95% of the companies in the same industry.
In the last couple of years the Profit Margin of EQNR has grown nicely.
With a decent Operating Margin value of 28.86%, EQNR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
EQNR's Operating Margin has improved in the last couple of years.
EQNR has a Gross Margin of 49.13%. This is comparable to the rest of the industry: EQNR outperforms 58.57% of its industry peers.
In the last couple of years the Gross Margin of EQNR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.86% | ||
| PM (TTM) | 7.72% | ||
| GM | 49.13% |
OM growth 3Y-8.57%
OM growth 5Y5.15%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
EQNR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EQNR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EQNR has been reduced compared to 5 years ago.
EQNR has a worse debt/assets ratio than last year.
2.2 Solvency
EQNR has an Altman-Z score of 2.44. This is not the best score and indicates that EQNR is in the grey zone with still only limited risk for bankruptcy at the moment.
EQNR has a better Altman-Z score (2.44) than 74.29% of its industry peers.
The Debt to FCF ratio of EQNR is 4.39, which is a neutral value as it means it would take EQNR, 4.39 years of fcf income to pay off all of its debts.
EQNR has a Debt to FCF ratio of 4.39. This is in the better half of the industry: EQNR outperforms 68.10% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that EQNR is somewhat dependend on debt financing.
The Debt to Equity ratio of EQNR (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 2.44 |
ROIC/WACC3.42
WACC6.94%
2.3 Liquidity
EQNR has a Current Ratio of 1.23. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.23, EQNR is in line with its industry, outperforming 56.67% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that EQNR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, EQNR is in the better half of the industry, outperforming 60.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for EQNR have decreased strongly by -18.81% in the last year.
The Earnings Per Share has been growing by 16.82% on average over the past years. This is quite good.
EQNR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.09%.
EQNR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.24% yearly.
EPS 1Y (TTM)-18.81%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-23.81%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-1.54%
3.2 Future
The Earnings Per Share is expected to grow by 3.89% on average over the next years.
Based on estimates for the next years, EQNR will show a decrease in Revenue. The Revenue will decrease by -4.76% on average per year.
EPS Next Y-7.91%
EPS Next 2Y-2.39%
EPS Next 3Y0.63%
EPS Next 5Y3.89%
Revenue Next Year-0.93%
Revenue Next 2Y-2.5%
Revenue Next 3Y-1.23%
Revenue Next 5Y-4.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.58 indicates a reasonable valuation of EQNR.
Based on the Price/Earnings ratio, EQNR is valued cheaply inside the industry as 82.38% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. EQNR is valued rather cheaply when compared to this.
EQNR is valuated cheaply with a Price/Forward Earnings ratio of 7.60.
Based on the Price/Forward Earnings ratio, EQNR is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
EQNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQNR is valued cheaper than 99.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EQNR is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.83 | ||
| EV/EBITDA | 1.38 |
4.3 Compensation for Growth
EQNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-2.39%
EPS Next 3Y0.63%
5. Dividend
5.1 Amount
EQNR has a Yearly Dividend Yield of 6.06%, which is a nice return.
EQNR's Dividend Yield is a higher than the industry average which is at 6.14.
EQNR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
5.2 History
On average, the dividend of EQNR grows each year by 24.62%, which is quite nice.
EQNR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EQNR pays out 82.65% of its income as dividend. This is not a sustainable payout ratio.
EQNR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.65%
EPS Next 2Y-2.39%
EPS Next 3Y0.63%
24.27
+0.06 (+0.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.35%
Inst Owner Change-0.06%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap61.29B
Analysts55
Price Target26.9 (10.84%)
Short Float %3.87%
Short Ratio6.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
Yearly Dividend3.02
Dividend Growth(5Y)24.62%
DP82.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.36%
Min EPS beat(2)-23.66%
Max EPS beat(2)-1.06%
EPS beat(4)1
Avg EPS beat(4)-8.27%
Min EPS beat(4)-23.66%
Max EPS beat(4)3.9%
EPS beat(8)4
Avg EPS beat(8)-0.52%
EPS beat(12)7
Avg EPS beat(12)2.81%
EPS beat(16)9
Avg EPS beat(16)3.76%
Revenue beat(2)2
Avg Revenue beat(2)9.82%
Min Revenue beat(2)8.5%
Max Revenue beat(2)11.14%
Revenue beat(4)3
Avg Revenue beat(4)5.77%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)11.14%
Revenue beat(8)5
Avg Revenue beat(8)2.03%
Revenue beat(12)6
Avg Revenue beat(12)-2.07%
Revenue beat(16)10
Avg Revenue beat(16)-0.59%
PT rev (1m)-4.55%
PT rev (3m)-1.23%
EPS NQ rev (1m)-9.07%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)-14.53%
EPS NY rev (3m)-8.66%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)5.43%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 7.6 | ||
| P/S | 0.58 | ||
| P/FCF | 7.83 | ||
| P/OCF | 2.92 | ||
| P/B | 1.46 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 1.38 |
EPS(TTM)2.83
EY11.66%
EPS(NY)3.19
Fwd EY13.16%
FCF(TTM)3.1
FCFY12.77%
OCF(TTM)8.31
OCFY34.26%
SpS42.16
BVpS16.6
TBVpS14.08
PEG (NY)N/A
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 19.6% | ||
| ROCE | 30.05% | ||
| ROIC | 23.74% | ||
| ROICexc | 30.94% | ||
| ROICexgc | 33.67% | ||
| OM | 28.86% | ||
| PM (TTM) | 7.72% | ||
| GM | 49.13% | ||
| FCFM | 7.35% |
ROA(3y)11.06%
ROA(5y)6.92%
ROE(3y)32.85%
ROE(5y)20.85%
ROIC(3y)33.92%
ROIC(5y)25.74%
ROICexc(3y)49.22%
ROICexc(5y)37.05%
ROICexgc(3y)52.95%
ROICexgc(5y)39.96%
ROCE(3y)44.19%
ROCE(5y)33.64%
ROICexcg growth 3Y-4.45%
ROICexcg growth 5Y16.65%
ROICexc growth 3Y-4.1%
ROICexc growth 5Y18%
OM growth 3Y-8.57%
OM growth 5Y5.15%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
F-Score4
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.39 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 121.16% | ||
| Cap/Sales | 12.37% | ||
| Interest Coverage | 42.68 | ||
| Cash Conversion | 50.47% | ||
| Profit Quality | 95.21% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.44 |
F-Score4
WACC6.94%
ROIC/WACC3.42
Cap/Depr(3y)119.04%
Cap/Depr(5y)96.27%
Cap/Sales(3y)9.19%
Cap/Sales(5y)11.03%
Profit Quality(3y)100.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.81%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-23.81%
EPS Next Y-7.91%
EPS Next 2Y-2.39%
EPS Next 3Y0.63%
EPS Next 5Y3.89%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-1.54%
Revenue Next Year-0.93%
Revenue Next 2Y-2.5%
Revenue Next 3Y-1.23%
Revenue Next 5Y-4.76%
EBIT growth 1Y-6.21%
EBIT growth 3Y-4.07%
EBIT growth 5Y15.92%
EBIT Next Year29.75%
EBIT Next 3Y6.16%
EBIT Next 5Y2.94%
FCF growth 1Y-56.45%
FCF growth 3Y-27.45%
FCF growth 5Y17.48%
OCF growth 1Y-23.85%
OCF growth 3Y-11.3%
OCF growth 5Y7.9%